Zurich/Switzerland, November 20, 2001 – Barry Callebaut
AG, the worldwide leading manufacturer of cocoa and chocolate
products, increased sales revenue in fiscal year 2000/01 to August
31 by 6% to CHF 2,548.6 million. This means that the company grew
twice as fast as the overall market (plus roughly 2%). A solid
operating profit (EBIT) of CHF 168.0 million, or 13% more than the
previous year, translates to an EBIT of CHF 213.40 a ton, or 8%
higher than the previous year. Net profit rose to CHF 97.1 million
(+8%). It did not increase at the same rate as EBIT, largely due to
higher financing costs entailed by the full consolidation of
strategic cocoa positions. Total assets were reduced by almost CHF
180 million. The debt-to-equity ratio fell to a satisfying 113%,
compared to 159% in the previous year. The equity ratio increased
to 34%, from 29% in the previous year.

Business Unit Development

The Chocolate for Industrial Clients (Food
Manufacturers) business unit increased its sales by 2% to
CHF 1,416.6 million, or 56% of total sales, based on solid sales
growth of almost all products, particularly in Europe. With a
worldwide increase in chocolate consumption of roughly 2%, Barry
Callebaut is targeting a higher rate of growth than that and a
simultaneous reduction of costs. The concentration of the client
base on ever fewer large clients continues. Barry Callebaut has
successfully exploited this development for some time as an
opportunity by positioning itself as a know-how partner and service
provider for the globally active food industry. The focus of the
business development effort will be on premium and health-promoting
products, such as chocolate without added sugar.

Gourmet & Specialities (Food Service), which supplies
special products to artisanal users, such as chocolate makers,
confectioners, hotels and restaurants, increased sales by 10% to
CHF 636.5 million. The main reason for the increase was
above-average growth in premium specialties. This business unit,
which was deliberately pushed hardest during the year, is already
contributing 25% to Group sales. In the next few years, Barry
Callebaut is targeting above-average growth in the sector, compared
to overall market growth. Additional potential has been identified
in North and Latin America, in particular. Opportunities are also
to be found in the trends towards healthy and health-promoting
nutrition and towards convenience food that requires no further
processing by their artisanal or private users.

The figures for the Consumer Products are incorporated
in the Gourmet & Specialties area. The Consumer
Products business area was converted into an independent unit in
July 2001. It encompasses niche products that are sold in some
European and African countries through selected distribution
channels, and represents an extension to our strategic customer
segments.

In the Cocoa & Sourcing (Risk Management, Sourcing
& Semi-Finished Products) business unit, the most
important products are cocoa liquor, cocoa butter and branded cocoa
powder. Around half of production is supplied to third parties and
half processed further by the company itself. Sales to third
parties increased by 12% to CHF 495.5 million, or 19% of total
sales, although volume declined by 3%. This is a consequence of
higher prices of cocoa powder, of cocoa bean sales as well as of
the deliberate reduction of sales to third parties. Costs in the
Sourcing area were further reduced by the worldwide central
procurement system implemented in recent years. As part of its
geographical risk diversification, Barry Callebaut established a
new production facility in Ghana. In order to exploit the potential
for profitable premium products, the procurement of organic cocoa
beans direct from producers and small cooperatives was increased in
order to ensure a consistently high quality.

Market Development

The world economy has been slowing down, especially in the final
quarter of the year under review.

Western Europe is Barry Callebaut’s most important
market with sales of 481,024 tons, or 61% of the total. Sales
increased by 4% over the previous year. A distribution center was
opened in Aalst, Belgium, where all the products manufactured in
Europe can be stored under optimum conditions before being shipped
all over the world. The facility in Drongen, Belgium, will be
closed by the end of 2001, allowing Barry Callebaut to use other
existing production capacity more effectively. Sales in
Eastern Europe (4% of the total) declined by 2%.
The exchange of recipes between the various production facilities
will be extended, opening up new sales opportunities at competitive
prices.

Sales in the Americas (North and South America)
increased by 10%. The share of total volume of the Americas was 27%
or 215,743 tons. Barry Callebaut succeeded in both gaining market
share and benefiting from increasing health consciousness in North
America through the growing use of products with additional
benefits, such as organic products, without added sugar, fat-free
or high-protein products and products that have not been subject to
genetic engineering.

Sales in Asia/Pacific increased by 3%. The
share of total sales was 25,164 tons or 3%. Barry Callebaut
continues to see great market opportunities in these countries.
Africa produced a sales growth of 23%, primarily
because of the consolidation of Van Houten for the full year. Barry
Callebaut is now present in Senegal, Cameroon and the Ivory Coast
with its own production facilities. In the Middle East, Barry
Callebaut was faced with some very strong quality and price
competition. Nevertheless, sales volume remained stable. The region
contributed 5% or 35,893 tons to total sales.

Strategic concentration to ensure long-term
growth

In the future, Barry Callebaut will continue to focus on driving
forward its growth in high-quality products and services in the
chocolate and gourmet areas. In the

Chocolate for Industrial Clients (Food
Manufacturers) area, the focus will be on the
reinforcement of cost leadership in combination with the provision
of further services. The Gourmet & Specialties (Food
Service) will place an increased emphasis on innovative,
high-value, high-margin products and services. In the Cocoa
& Sourcing (Risk Management, Sourcing & Semi-Finished
Product) area, there will be a reduction in the share of
the business of cocoa products for third parties, while retaining
the existing know-how throughout the entire value chain by
producing for the company’s own needs. This will further reduce
the exposure to fluctuations in the price of semi-finished
products. Barry Callebaut wants to use these measures to secure
sustainable quality growth for the whole Group.

Tax claim in the Ivory Coast

During the year under report, the Ivory Coast raised a
retrospective tax claim in the amount of CHF 247 million for the
years 1998-2000 against Barry Callebaut’s local subsidiary, as
was reported when presenting half-year results. Barry Callebaut
does not consider this claim justified and has decided to take
appropriate measures to counter this claim. Discussions are still
going on.

Proposals to the Annual General Meeting

At the Annual General Meeting on December 13, 2001, Mr Klaus J.
Jacobs and Dr Gaudenz Staehelin will retire from the Board of Barry
Callebaut AG. It is proposed that Dr Christian J. Jacobs,
designated Chairman of the Board of KJ Jacobs AG, in Hamburg,
Germany, and Mr Rolando Benedick, in Basle, Switzerland, CEO of
Manor AG, be elected to the Board of Directors. The Board further
proposes to the Annual General Meeting a dividend increase from CHF
6.50 to CHF 6.70 for each registered share.

Outlook

For the year 2001/02, Barry Callebaut expects a further
strengthening of operating performance. The short-term effects of
the present economic slow-down cannot be estimated with precision.
In light of the continuing structural changes in the cocoa and
chocolate industries, Barry Callebaut is confident that the
measures that have been taken will continue to enhance its
leadership position.

With annual sales of CHF 2.5 billion Barry Callebaut is the
world’s leading manufacturer of high-quality cocoa and chocolate
products. The company processes 14% of the global cocoa harvest,
operates 24 production facilities in 16 countries and employs
approximately 5,000 people. The company is divided into four
strategic areas: Cocoa & Sourcing (Risk Management, Sourcing
& Semi-Finished Products), Chocolate for Industrial Clients
(Food Manufacturers), Gourmet & Specialties (Food Service) and,
since July 2001, Consumer Products.

Its clients range from industrial processors, such as the world
famous branded consumer goods manufacturers who produce chocolate,
confectionery, biscuits, dairy products, ice cream and breakfast
cereals incorporating Barry Callebaut’s products, to artisanal
users, including hotels, gastronomy, chocolate makers, pastry chefs
and bakers. Barry Callebaut also provides a comprehensive range of
services in the fields of product development, processing, training
and marketing.

The holding company, Barry Callebaut AG has been listed on the
SWX Swiss Exchange since June 1998 (ticker symbol BARN). The fully
paid-up share capital amounts to CHF 517 million, divided into
registered shares with a nominal value of CHF 100 each. Market
capitalization on August 31, 2001, the end of the financial year
2000/01, was CHF 1.085 billion.